Multichoice paid R1.3 billion for a fifth of a Nigerian bet shop known for 30% commissions

An excerpt from a BetKing commission breakdown from late 2018, after it pushed up maximum payments to agents.

• Multichoice has valued Nigerian sports-bet company BetKing at R6.5 billion – at least – with a 20% buy.
• The pay-TV company says it wants to "to expand the group’s entertainment ecosystem further".
• In Nigeria, BetKing is well known for offering shopkeepers commissions of up to 30%, with a structure designed to push punters towards specific, risky types of bets.
• For more stories go to www.BusinessInsider.co.za.

South African pay TV company Multichoice has paid R1.3 billion – and may still pay another R500 million more – for a 20% stake in Nigerian sports-bet company BetKing, it disclosed on Thursday.

It had bought the shareholding "[i]n order to expand the group’s entertainment ecosystem further", it said in a brief note in its interim results statement.

The first payment was an "upfront investment", Multichoice said, valuing BetKing at a minimum of R6.5 billion. The additional payment is dependent on earn-out targets, which it did not disclose, up to the end of 2023.

Though Multichoice described BetKing as "pan-African", it has major betting operations only in Nigeria, Ethiopia, and as of June this year, Kenya, where it entered into a major soccer sponsorship.

In its home country it has built an agent network it says numbers more than 8,000 in part through a commission structure that offers shop-owners up to 30%, for transactions via equipment it provides, with the promise of payment within 24 hours.

In order to hit the high commission payments, agents must push players towards high-risk bets. Those who do not will earn 1% instead.

Multichoice said its group intends "further expand its entertainment ecosystem and revenue prospects by offering new products and services and by pursuing new growth opportunities."

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